OJK shuts down BPR Pasarraya Kuta over capital and liquidity troubles
Indonesia’s Financial Services Authority (OJK) has revoked the business licence of BPR Pasarraya Kuta in Badung, Bali, citing the rural bank’s failure to fix long-running capital and liquidity problems despite being placed under a special…
By Pandi Muktar
Editor: Mursyid Sonsang
· Event date: · 3 min read
Kuta, Badung, Bali — The Financial Services Authority (Otoritas Jasa Keuangan/OJK) has revoked the business licence of PT Bank Perekonomian Rakyat (BPR) Pasarraya Kuta in Badung, Bali, after the rural bank failed to resolve persistent capital and liquidity problems despite earlier rescue efforts.
According to statements reported by several national media citing OJK’s official decision, the licence revocation is based on the Decree of the OJK Board of Commissioners Number KEP-71/D.03/2026 dated 17 September 2026, which formally withdraws BPR Pasarraya Kuta’s permit to operate as a rural bank. The bank was headquartered on Jalan Raya Tuban No. 62, in Tuban, Kuta, Badung.
OJK’s Bali provincial office explained that the move follows the failure of the bank’s management and shareholders to carry out a credible recovery plan addressing capital adequacy and liquidity pressures. Media reports quoting OJK state that supervisory measures had been ongoing, but the bank did not succeed in restoring its capital to required levels or stabilising its liquidity. As a result, OJK opted for licence revocation as part of efforts to strengthen the banking industry and maintain public trust.
The problems at BPR Pasarraya Kuta were not new. The bank had previously been placed under special supervision with the status of BPR Dalam Penyehatan (BPR under rehabilitation) in early September 2025 because its Capital Adequacy Ratio was below regulatory thresholds, according to coverage of OJK’s explanation. Despite this status and the accompanying recovery plan, capital and liquidity weaknesses were not resolved.
Following the licence revocation decision, the Indonesia Deposit Insurance Corporation (Lembaga Penjamin Simpanan/LPS) moved to resolve the bank through liquidation and to prepare for insured deposit payouts. LPS stated that it is carrying out reconciliation and verification of deposit data at BPR Pasarraya Kuta and aims to complete this process within a maximum of 90 working days from the licence revocation date. After this verification, LPS will start paying guaranteed deposit claims and implement the liquidation process in line with Indonesia’s deposit insurance law.
LPS has urged customers of BPR Pasarraya Kuta to remain calm and to rely on official channels for information about claim payments and liquidation. The corporation has also advised depositors to be cautious of any parties that could disrupt or delay the claim and liquidation process. Customers can obtain further details through LPS’s information service centre and official contact points as referenced in public statements.
With the closure of BPR Pasarraya Kuta, OJK data cited by several outlets indicate that the number of rural banks and sharia rural banks whose licences have been revoked in 2026 has reached 14 institutions nationwide. The step underscores ongoing regulatory efforts to address weak institutions and reinforce stability in Indonesia’s banking sector, including in Bali’s local financial ecosystem.
Sources
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